Annual results Accell Group 2015 Amsterdam, 26 February 2016
René J. Takens, CEO Hielke H. Sybesma, CFO
Agenda 1. Accell Group in 2015 2. The Accell Group share 3. Financials 4. Outlook
26 February 2016
Accell Group N.V. – presentation annual results 2015
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Main developments 2015 • Net turnover rises 12% to € 986.4 mln. influenced by: • Increase in sales electric bikes • Strong growing P&A turnover in Europe and growth of own brand • Acquisition Comet and CSN
• Operating profit rises 33% to € 58.5 mln. • Net profit rises 22% to € 32.3 mln. • Results are influenced by incident Taiwan
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Accell Group N.V. – presentation annual results 2015
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Summary of the results (x € mln.)
31-12-2014
31-12-2015
∆
Turnover
882.4
986.4
12%
Operating profit (EBIT)
44.1
58.5
33%
Net profit
26.5
32.3
22%
Earnings per share
1.06
1.29
22%
Solvency rate
44.5%
41.9%
-6%
Total assets
631.8
729.7
16%
Share price
13.60
21.07
55%
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Accell Group N.V. – presentation annual results 2015
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Turnover per segment
Turnover FY 2014
(x € mln.) Bicycles Parts & Accessories*
658.1 224.3 882.4
FY2015 difference 719.0 267.4 986.4
organically
9%
10%
19%
7%
12%
9%
* Turnover Parts & Accessories including fitness equipment
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Accell Group N.V. – presentation annual results 2015
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Bicycles
Traditional bikes 28%
Electric bikes 45%
Sports bikes 27%
• Turnover bicycles rises 9% to € 719 mln. (2014: € 658 mln.) • Strong growth sales electric bikes, especially in Germany. Electric bike sales accounts for 45% of overall turnover in bicycle segment (2014: 41%) • In 2015, over 1.6 mln. bicycles sold (2014: 1.7 mln.) • Average price per bicycle rises 16% to € 437 (2014: € 377) as electric bike sales accounted for a greater proportion of overall turnover • Segment result up 22% to € 56.3 mln. (2014: € 46.3 mln.)
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Accell Group N.V. – presentation annual results 2015
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Bicycles per country
• The Netherlands: Turnover decreases by 7% largely due to strong competition in E-bikes, rise of other channels and disappearance of company bicycle scheme. Sales fall by 10% • Germany: Increase of turnover by 16% due to strong growth in E-bikes by Haibike, Winora and Ghost. Sales rise by 12% • North America: Growth in multi-sports channel due to introduction of Ghost. Turnover in the traditional bicycle retailers channel (IBD) decreases by 10%. Turnover growth in euro’s influenced by exchange rate EUR/USD • Rest of Europe: Turnover growth of 22% in nearly all countries in which Accell Group is active • Other countries: Turnover in Turkey increased and turnover in the Far East remained stable 26 February 2016
Accell Group N.V. – presentation annual results 2015
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Parts & Accessories
• Turnover of the segment increases 19% to € 267 mln. (2014: € 224 mln.) especially due to the acquisition of Comet and CSN. The organic growth in turnover is 7% • Strong turnover growth of own brands of 10%. The biggest proportion comes from XLC which is distributed in over 45 countries • Accell Group has strong positions in especially the Netherlands, Germany, France, Spain, Italy, United Kingdom and Scandinavia • Segment result rises 46% to € 16.8 mln. (2014: € 11.5 mln.)
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Accell Group N.V. – presentation annual results 2015
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Parts & Accessories per country
• The Netherlands: Higher turnover (7%) party due to rising sales for E-bike parts such as batteries • Germany: Turnover rises 11% compared to last year • North America: Turnover decreases partly as a result of several supplies who decided to supply to dealers directly • Rest of Europe: Turnover up 34% due to acquisition of Comet and CSN • Other countries: Turnover grows 30% due to P&A sales in Turkey
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Accell Group N.V. – presentation annual results 2015
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Geographical distribution of turnover
Turnover
(x € mln.)
FY 2014 236.7 198.4 117.5 298.2 31.6 882.4
The Netherlands Germany North America Rest of Europe Other countries
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FY2015 222.4 227.0 132.1 365.6 39.3 986.4
difference
organically
(6%)
(5%)
14%
16%
12%
16%
23%
14%
24%
2%
12%
9%
Accell Group N.V. – presentation annual results 2015
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Incident Taiwan • Investigation by forensic agency concludes isolated incident • Cause of theft located in circumvention of controls (by abuse of systems, processes and trust) and abuse of available payment facilities • Expected damage remains € 4 mln. • Conclusions of investigation are incorporated into plans to further strengthen the system of Internal Controls
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Accell Group N.V. – presentation annual results 2015
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Agenda 1. Accell Group in 2015 2. The Accell Group share 3. Financials 4. Outlook
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Accell Group N.V. – presentation annual results 2015
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Share price development Accell Group
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Accell Group N.V. – presentation annual results 2015
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Agenda 1. Accell Group in 2015 2. The Accell Group share 3. Financials 4. Outlook
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Accell Group N.V. – presentation annual results 2015
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Profit & loss statement (x € mln.)
FY 2014
FY2015
∆
882.4
986.4
12%
Costs of materials
(614.1)
(673.4)
10%
Other costs
(223.5)
12%
Net turnover
Operating profit (EBIT)
44.8
(250.5) 62.5
Non-recurring income & expenses
(0.7)
(4.0)
0.4
(0.9)
Financial income & expenses
(8.8)
(9.1)
4%
Taxes
(9.3)
(16.2)
74%
Net profit
26.5
32.3
22%
Result of participations
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Accell Group N.V. – presentation annual results 2015
40%
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Added value FY 2014
F Y 201 5
∆ FY
Net turnover C os t of materials
882.4 (614.1)
986.4 (673.4)
12% 10%
A dded v alue
268.3
313.0
17%
30.4%
31.7%
(x € mln.)
• In relative terms, added value rises 1.3% points: • Improved underlying margins and fewer discounts • Improved sales mix due to more electric bikes • Positive contribution acquisition Comet and CSN
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Accell Group N.V. – presentation annual results 2015
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Operational costs (x € mln.)
FY 2014
% turnover
FY2015
% turnover
∆
Staffing costs
(107.4)
12.2%
(119.3)
12.1%
11%
(8.9)
1.0%
(10.1)
1.0%
13%
Other operating costs
(107.2)
12.1%
(121.1)
12.3%
13%
Operating costs
(223.5)
25.3%
(250.5)
25.4%
12%
Depreciation & amortization
0,0
0,0
• In relative terms operational costs rise by 0.1% point: • Staffing costs decrease to 12.1% of turnover (2014: 12.2%) • Other operating costs increase to 12.3% of turnover (2014: 12.1%) • Total operating costs increase to 25.4% of turnover (2014: 25.3%)
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Accell Group N.V. – presentation annual results 2015
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Net profit FY 2014
FY2015
∆
Operating result (EBIT)
44.8
62.5
40%
Non-recurring income & expenses Result of participations Financial income & expenses Taxes
(0.7) 0.4 (8.8) (9.3)
(4.0) (0.9) (9.1) (16.2)
4% 74%
Net profit
26.5
32.3
22%
(x € mln.)
• Non-recurring loss 2015: incident in Taiwan (€ 4 mln.) • Financial costs € 0.3 mln. higher •
Taxes rise to 33.5% (2014: 25.9%) due to: • Incident in Taiwan • Increase of results in Germany • Not capitalizing unused tax losses in North America 26 February 2016
Accell Group N.V. – presentation annual results 2015
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Results per half year (x € mln.)
HY1 2014
Net turnover
HY1 2015
HY2 2014
HY2 2015
FY 2014
FY2015
506.2
573.8
376.2
412.6
882.4
986.4
(351.4)
(393.8)
(262.7)
(279.6)
(614.1)
(673.4)
Added value %
30.6%
31.4%
30.2%
32.2%
30.4%
31.7%
Depreciation and amortization
(4.3)
(5.2)
(4.6)
(4.9)
(8.9)
(10.1)
Staff costs
(55.9)
(62.0)
(51.5)
(57.3)
(107.4)
(119.3)
Other operating costs
(56.4)
(63.7)
(50.9)
(57.4)
(107.3)
(121.1)
(116.6)
(130.9)
(107.0)
(119.6)
(223.5)
(250.5)
38.2
49.1
6.6
13.4
44.8
62.5
7.5%
8.6%
1.8%
3.2%
5.1%
6.3%
1.2
0.0
(1.9)
(4.0)
(0.7)
(4.0)
39.4
49.1
4.7
9.4
44.1
58.5
7.8%
8.6%
1.3%
2.3%
5.0%
5.9%
0.0
0.0
0.4
(0.9)
0.4
(0.9)
Financial profits and losses
(5.1)
(5.6)
(3.7)
(3.5)
(8.8)
(9.1)
Taxes
(6.8)
(11.7)
(2.5)
(4.6)
(9.3)
(16.2)
Net profit
27.5
31.9
(1.0)
0.4
26.5
32.3
5.4%
5.6%
(0.3%)
0.1%
3.0%
Costs of materials
Operating costs
Operating result before non-recurring income & expenses Non-recurring income & expenses
Operating profit (EBIT) Result of participations
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Accell Group N.V. – presentation annual results 2015
3.3%
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Balance sheet, assets (x € mln.) Fixed assets Intangible fixed assets Tangible fixed assets Financial fixed assets Current assets Inventories Receivables Cash and cash equivalents
Total assets
26 February 2016
31/12/2014
31/12/2015
98.5 68.1 34.3 200.9
103.2 69.8 31.8 204.8
244.5 172.9 13.5 430.9
338.7 172.0 14.2 524.9
631.8
729.7
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Working capital (x € mln.)
31-12-2014
31-12-2015
∆
244.5 133.3 (108.5)
338.7 134.6 (135.6)
39%
Total
269.2
337.7
25%
Working capital as % of net turnover
30.5%
34.2%
Inventories Accounts receivable Accounts payable
1% 25%
• Inventories are increasing, both in number and value: • Higher cost price per bicycle due to growing E-bike proportion • More bikes in stock due to expected turnover growth in the coming season • Higher stock components by bringing forward production •
Higher accounts receivable balance due to higher sales: • Accounts receivable decrease by 1.4% as percentage of turnover
• Accounts payable increase due to higher inventories and increase in cost prices of goods in transit 26 February 2016
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Balance sheet, liabilities (x € mln.)
31-12-2014
31-12-2015
Group equity
281.1
305.9
Provisions
34.0
31.2
Long-term debts
70.8
59.0
Credit institutions
95.0
155.2
Short term debts
151.0
178.4
Total liabilities
631.8
729.7
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Group equity (x € mln) Total equity on January 1, 2015
281.1
Net profit Paid dividend 2014 Other changes Growth
32.3 (8.7) 1.2 24.8
Total equity on December 31, 2015
305.9
• Other changes include: • Processing of financial instruments due to hedging activities • Currency effects of foreign activities
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Cash flow 31-12-2014
31-12-2015
44,1 8,9 0,3 53,3 2,8 56,1 (9,2) (8,7) 38,2
58,5 10,1 0,4 68,9 (68,3) 0,7 (10,0) (9,8) (19,0)
Changes in fixed assets Sale of business activities Business combinations Net cash flow from investment activities
0,3 (9,6) 23,4 (14,0) 0,1
0,7 (10,9) 0,0 (1,8) (12,0)
Free cash flow
38,3
(31,1)
Cash flow from financing activities Changes in bank loans and bank overdrafts Cash dividend Stock and option plans Net cash flow from financing activities
(34,2) (7,2) (0,1) (41,5)
39,7 (8,7) (0,1) 31,0
Net cash flow
(3,2)
(0,1)
(x € mln.)
Cash flow from operating activities Operating Profit Depreciation Share-based payments Operating cash flow for working capital and facilities Changes in working capital and provisions Cash flow from operating activities Interest paid and banking costs Income taxes paid Net cash flow from operating activities Cash flow from investment activities
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Ratios FY 2014
EPS
FY2015
€ 1.06
€ 1.29
ROCE
9.6%
11.0%
Operating profit* / Turnover
5.1%
6.3%
44.5%
41.9%
2.9
2.9
2,796
3,037
Solvency Net debt / EBITDA Average number of employees (FTE) * Excluding non-recurring profits and losses
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Proposed dividend FY 2014
FY2015
€ 1.06
€ 1.29
-
€ 0.16
€ 1.06
€ 1.44
58%
50%
Proposed dividend
€ 0.61
€ 0.72
Share price (years end)
€ 13.60
€ 21.07
4.5%
3.4%
Reported EPS Incident Taiwan Total Pay out ratio
Dividend yield
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Agenda 1. Accell Group in 2015 2. The Accell Group share 3. Financials 4. Outlook
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Strategy Accell Group • Creating innovative, high-quality and recognisable products with strong brands • Positioning, promoting and expanding the brand portfolio, targeted marketing on points-of-sale and consumers while intensively cooperating and supporting specialised retailers • Continuous cost control, inventory management and portfolio management while expanding the exploitation of synergies • Actively looking for possible acquisitions
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Outlook 2016 • New collections with many innovations in the field of technology and design • Through product development, creating new usages and entering new markets, the sale of bicycles will continue to grow • Continuing favourable underlying trends
Growth of both turnover and results, barring unforeseen circumstances
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Disclaimer ► This presentation may contain forward-looking statements. These are based on our current plans, expectations and projections about future events
► Any forward looking statements are subject to risks, uncertainties and assumptions and speak only as of the date they are made. Our results could differ materially from those anticipated in any forward-looking statements
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